Blog ~ News and Updates on Hearndon Homes

January 4th, 2018

If you are interested in buying a home, chances are you’ve experienced the ambiguity of how much you will need for a down payment. Perhaps you know how much you will need to pay, but are troubled by how to save the dough.

Here are a few tips from some of our favored experts on how to save for a down payment.

Figure out exactly how much you need to save

Work with your mortgage lender to determine exactly how much you’ll need to save for your down payment. There are a variety of factors at play, and a lender will help you understand how much of a mortgage you will qualify for—which will then determine how much you will need for a down payment. A professional will help you calculate how much to set aside based on your income, debts and expenses.

Clear any credit card debt

Lowering the amount of money you’re dishing out to others helps you build more savings. Credit card debts are a particularly unfortunate thorn in your savings accounts side as the high interest rates can take a toll overtime. Rather than paying your monthly minimums, start paying greater sums to your credit card debt to clear it faster. The sooner you clear these debts, the more money you can set aside toward your down payment savings.

Make your money work smarter

Boost your hard-earned dollars by exploring an alternative to a regular savings account. Regular savings accounts earn little to no interest over time, whereas alternative money market accounts or a certificate deposit (CD) will accrue more interest over time. Be sure to check with a financial planner at your bank on which type of account is best for your needs.

Add savings to your budget

Set up a savings plan and stick to it. Make quarterly, monthly or weekly goals that are realistic and achievable. You may need to find ways to earn extra income, or perhaps cut back on expenses or find items to sell to help you reach your goals.

Tap your retirement or IRA accounts

Are you familiar with the details of your retirement accounts? In some cases, your plan may allow you to borrow money from your funds to put toward a new home. Also, if you are a first-time homebuyer you could potentially withdraw money from your IRA account.

For more information on how to save for your down payment, reach out to a member of our team!

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Posted In: Dominion Meadows, Home Living, New Home Construction, New Homes in Chesapeake, New Homes in Elizabeth City, New Homes in Smithfield, New Homes in Suffolk, Uncategorized

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  • "We moved here from New England, so most of the transaction on our new home was done long distance. Everything went very smoothly and the house was finished in time. Our questions after closing were addressed in a timely manner."
    - Lisa B.
  • "Our experience at Stockbridge has been awesome. They have a wonderful agent - very kind and knowledgeable of her inventory and community. The features of both the homes and community has exceeded our expectations."
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  • "When I saw the value Hearndon was putting in these homes, I couldn't wait to buy one. I just burst out in tears when I closed and moved into the home of my dreams."
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